Hundreds more families in Wales will be able to access funded childcare thanks to a £55 million investment announced today.
The Welsh Government has confirmed a £55 million investment in childcare, including the rollout of funded childcare to more two-year-olds across Wales and £10m capital funding, as part of the First Supplementary Budget 2026-27.
This funding will help to accelerate the rollout of 12.5 hours of funded childcare per week to all two-year-olds, delivered through local authorities.
£10m capital funding will help to enhance and expand childcare settings, improving the quality, capacity and accessibility of early years provision.
The funding will play a vital role in supporting childcare by helping manage rising demand, strengthening the long-term sustainability of providers, and supporting Welsh-medium childcare – contributing to the Welsh Government’s ambition of reaching one million Welsh speakers by 2050.
The funding represents a significant step towards the Welsh Government’s commitment to provide 20 hours of funded care per week for all children aged nine months to four years old. At full rollout, the new childcare offer will be the most generous anywhere in the UK.
Wrexham has today joined Swansea, Merthyr Tydfil and Newport in providing funded childcare all two-year-olds in their areas.
Deputy First Minister for Wales, with responsibility for childcare, Sioned Williams said:
“This investment shows we are accelerating our commitments to the families of Wales. Childcare costs in Wales are the highest in the UK and I am determined to help families all over Wales, while also supporting children’s development.
“I’m particularly pleased that Wrexham is now expanding its childcare offer to all two-year-olds, and we will continue to work closely with local authorities across Wales to roll this out everywhere. This is spending with purpose, with every pound working harder for Wales.”
The Expansion of Childcare Expert Steering Group will advise on the development of the phased rollout, with a focus on workforce planning, digital applications and improving access for all families.
